- Russian banks have developed the framework for cryptocurrency adoption.
- The proposal includes the taxation schemes that may be applicable to cryptocurrencies.
The Association of Banks of Russia (ADB) prepared the concept of cryptocurrency circulation. The banks suggest that the owners of digital assets should disclose their holdings, otherwise they will bear criminal liability.
The concept describes the procedure for collecting cryptocurrencies under the law enforcement, bankruptcy or taxation procedures.
As part of the proposed procedure, “authorized market makers” should identtify the owners of digital assets upon creditors requests. The later will have to transfer passwords from their electronic wallets to creditors upon the court decision.
The authors of the document also suppest two types of taxation. Goods and services purchased for cryptocurrency shall be taxed as exchange transactions, while the proceeds from buying and selling digital assets should be subject to income tax.
Thus, individuals are required to declare cryptocurrencies upon purchase and pay taxes after their sale. The taxation of individuals will be similar to the taxation of investors in the securities market.
It is worth noting, that ABR is a non-governmental organization and it does not include Russia’s largest banks, like Sberbank, Alfa Bank or VTB.